CNS Canada — Cash bids for Canada Western Red Spring (CWRS) wheat moved lower during the week ended Monday, following the sharply weaker U.S. futures market for the second consecutive week.
Average spot bids for CWRS (13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in Monday at around C$198 per tonne, or $5.40 per bushel, based on pricing available from a cross-section of delivery points. That compares with $203 per tonne, or $5.52 per bushel the previous week.
Basis levels improved slightly to a discount of $66 relative to the futures, from a $69 difference the week prior.
The May spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted Monday at US$7.2225 per bushel, down 20.5 cents from the week prior.
Only a handful of elevators in Alberta were offering spot bids for Canada Prairie Spring Red (CPSR) wheat, with an average basis of $100 below the futures as of Monday. The average price was around $172 per tonne ($4.68/bu.). There weren’t any spot bids for CPSR last week.
Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The May Kansas City wheat contract lost 24.5 cents during the week, settling Monday at US$7.395/bu.
U.S. futures moved lower as traders continued to take profits on a recent rally. Easing concerns about drought conditions in the U.S. were also bearish, though uncertainty about how much damage has already been done to U.S. winter wheat crops by dry weather kept some caution in the futures.
Average durum prices moved higher, with the price at $179 per tonne ($4.87/bu.) on Monday. Last week prices were at $174 per tonne ($4.75/bu.).
— Terryn Shiells writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.